When objects of value are in the possession of third parties, there is a risk that those objects will be damaged. For example, when an airline customer has checked their luggage in with an airline, they may receive their luggage at the conclusion of their trip and notice damage. An airline customer with damaged luggage may complain to the airline and demand compensation. In many instances, the damage to the luggage is pre-existing, which would not be the responsibility of the airline. In other instances, the damage to the luggage is associated with normal wear and tear, which also would not be the responsibility of the airline. Of course, it is also possible that the airline mishandled their customer's luggage and that the airline should compensate the customer for the damage.
When a customer demands compensation for damaged luggage which is not the fault of the airline, the customer's demands may be regarded as a false claim. False claims may be honest misunderstandings by customers about the pre-existing condition of their luggage. However, false claims may be customers trying to fraudulently receive compensation from an airline. It may be pragmatically difficult for airlines, to argue with customers about false claims without adequate evidence, since that may result in reduced customer loyalty. At the same time, it is important for airlines to avoid having to pay compensation for damage that which was not their fault. Additionally, if damage to luggage is due to the fault of the airline, then it is in the airline's interest to determine the source of the damage in order to prevent future damage to other customer's luggage.
These complications in assessing damage to objects in the possession of third parties is not limited to airlines. Similar challenges can be found with package delivery services, rental car companies, equipment rental companies, apparel rentals, dry cleaners, and any other circumstance where objects are the possession of third parties and are open to dispute when damage occurs.